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103 Cards in this Set

  • Front
  • Back
What does the financial accounting component focus on?
The general ledger, the processing of receivables and asset accounting.
What are the important tasks of financial accounting?
The recording of monetary and value flows as well as the evaluation of inventories.
What does the general ledger contain?
The recording of all accounting-relevant business transactions on to G/L accounts from a business point of view.
What is every general ledger structured according to?
A chart of accounts
What does a chart of accounts contain?
The definitions of all G/L accounts of the general ledger.
What do the definitions of all G/L accounts include?
The account number, the general ledger account designation, and the categorization of the G/L account as an income statement or balance sheet account.
When the general ledger only contains collective postings, what passes on detailed data to the general ledger in compressed form?
Subledgers
What is the purpose of a reconciliation account?
To connect the subledgers to teh general ledger in real-time as soon as a subledger is posted.
What does the accounts payable accounting (AP) record?
All business transactions that have to do with the relationships to suppliers. It takes much of its data from purchasing (MM).
What does the accounts receivable accounting (AR) record?
All business transactions that have to do with the relationships to customers. It takes much of its data from sales and distribution (SD).
What does the asset accounting (AA) record?
All business transactions that have to do with the management of assets.
What does the bank ledger support?
The booking of cash flows
On the balance sheet, what do the assets and liabilities account start off with?
Assets account - debit
Material account - debit
Receivables account - debit
Bank account - debit
Equity capital - credit
Loans - credit
Liabilities - credit
At what organizational level is the general ledger managed?
The company code level
Transactions entered into the subledgers, materials management, or in treasury flow occur in what time?
Real
What does the Treasury component focus on?
Functions such as payment means, treasury management loand and market risk management.
What is financial accounting used for?
Legal reporting
What is management accounting used for?
Internal management information regarding cost and revenues
What elements does financial accounting include?
AR
AP
Fixed assets accounting
Bank accounting
General ledger
Cash journal accounitng
Inventory accounting
Tax accounting
Accrual accounting
Cash management - usually applies to financial supply chain management
What is a company code?
The smallest entity that supports a full legal set of books.
What are business areas used for?
Internal purposes to create balance sheet and profit and loss statements or can also be used to meet external segment reporting requirements.
What may business areas be used for?
To facilitate external segment reporting across company codes by assigning posting made in any company code defined within a client.
What is a controlling area?
A self-contained organizational structure for which cost and revenues can be managed and allocated. It represent a separated unit of cost accounting.
How many company codes can be assigned to a controlling area?
One or more
What must occur for cross-company code accounting to take place?
The assigned comapny codes and the controlling area must all utilize the same operating chart of accounts and fiscal calendar year.
What does it mean for business areas to be company-code independent?
That you can make postings to them from any company code?
How many controlling areas can be assigned to a company code?
One
For each comapny code, how many chart of accuonts could you specify for the general ledger?
One
What does the account group control in the chart of accounts segment?
The company code segment fields.
What are the two segments of the G/L master record?
The chart of accounts segment and the company code segment.
What does the chart of accounts segment control in the general ledger master record?
High level control features like account description, type, and group and the consolidation account number.
What does the company code segment in the general ledger master record control?
How the company code that uses that specific account manages the account.
What are the controls found in the company code segment of the general ledger master record?
1. Account control
2. Account management
3. Bank/financial details
4. Joint ventures
5. Interest calculation
6. Document control
What does the account group classify in the chart of accounts segment of the general ledger master record?
It classifies general ledger accounts into user-defined segments and determines the number range of the accounts that will fall into each segment.

Ex: Cash, asset, material, P&L, and liabilities
How is the field status of the company code segment of the master record determined?
When creating, changing, or displaying the user-defined segments of the general ledger master record.
What are the four field statuses of a field?
Suppress, required, display and optional
What does the reconciliation account ensure between the subledger account and the general ledger?
Real-time integration
Is the general ledger reconciliation account designed for direct postings?
No.
What are postings in the general ledger limited to?
They are limited to reconciliation accounts by the use of account types.
In summary, what does the new general ledger contain?
Functions that unify the conventional general ledger with the special ledgers components.
What are the advantages of the new general ledger in SAP ERP?
1. An extended data structure
2. Real-time document split(online split)
3. Real-time integration of CO - FI
4. Manage multiple books (ledgers)
What comprises the extended data structure in the new general ledger?
1. A functional area field
2. A profit center and partner profit center field
3. The segment field
4. Use the ECC to display simplified management accounting (CO light)
What does the functional area field in the new general ledger mean you no longer have to do?
Activate the cost of sales ledger to creat a P&L statement following cost-of-sales accounting.
What do the profit center and partner profit center fields allow you to do in the new general ledger?
Conduct management analysis
What are the available objects in the CO light feature of the extended data structure advantage of the new general ledger?
Cost centers and primary cost elements
What does the segment field of the extended data structure advantage of the new general ledger allow you to carry out?
Segment reporting via a new entity (characteristic/category)
What does it mean when the new data structure of the general ledger is flexibly expandable?
That you can include customized fields and update totals
What does the document splitting feature of the new general ledger allow?
For expenses to be assigned to two or more segments and split across the screen by segment. The document split guarantees a continuous split of the characteristic segment meaning that each document for the activated entity reaches a balance zero position.
What other criteria, besides the CO FI integration, are included in this advantage of the extended data structure?
Company code
Business area
Profit center
Segment
Funds
Receivable
How many leading ledgers are allowed per client?
Only one
What does the leading ledger reflect?
The set of accounting principles used to create consolidated financial statements.
What does the multiple books advantage allow for in the new general ledger?
To see other ledgers in addition to the leading ledger for paralell financial reporting
What is the account solution (multiple books) advantage from SAP ERP know as in the new general ledger?
The ledger solution
What is a held document?
A document that a user saves without posting to complete and post later.
What areas is the creation screen divided into for the posting of a general ledger account document?
Work templates - select screen variants, account assignment templates, or held documents
Header data
Line item information
Information area
What is a posting key?
An instrument that is used for internal control during complex posting to tell the system:

1. Account type
2. Whether it is a debit or credit posting
3. Which fields of a line item may have or require an entry
What does the new enjoy transaction feature?
You no longer need to enter the posting key becasue you assign it via customizing.
What are balance and line item displays provided for?
To display account data.
What does the vendor master record contain?
Data that controls how transaction data is posted and processed including all the informationa bout a vendor that is needed to be able to conduct business with them.
Where is master data that is need by a company to define how that particular company code will process transactions with the vendor stored?
In company specific records.
What must the various purchasing organizations of a group do before a suppliers master record can be used?
Data specific to purchasing in the vendor master record.
What effects does the entire procurement process have on the balance sheet?
1. GR to ware house - Debit material account and credit GR/IR

2. Incoming bills - Debit GR/IR and credit liabilities

3. Payment program - Debit liabilities and credit the bank
allocation
4. Account statement - debit the bank allocation and credit the bank
What does the goods receipt/invoice receipt clearing account ensure?
That goods were received for each invoice and vice versa.
What is a vendor invoice/credit memo?
A type of miscellaneous invoice entered directly into account payable. This transaction can be used to create documents in a foreign currency.
What areas is the accounts payable screen divided into?
1. Work templates
2. Header and vendor data
3. Line item information
4. Information area
What are the steps the system performs during the payment run?
1. Post payment documents
2. Clears open items
3. Prepares data for the printing out of payment media
What do customer master records contain?
Data that controls how transaction data is posted and processed including all the informationa bout a customer that is needed to be able to conduct business with them.
What is a sales area made up of?
A combination of a sales organization, distribution channel, and division.
What must a sales area define for a customer before it can start doing business with a customer?
Sales area specific settings for that customer
What is the credit control area and how can it be assigned?
It is an organizational unit used for credit control and can be assigned to individual company codes (decentralized) or to a group of comapny codes (centralized).
How is a credit control area generally managed?
By a separate credit department, which is divided into credit representative groups, with each group consisting of several credit representatives.
What are the 4 credit control areas the IDES group uses?
1. 5000 for Mexico

2. 6000 for Japan

3. USA and Canada, centralized, 3000

4. Europe, ccentralized, 1000
What is a credit management master record?
An extension of the costomer master record set up by the credit department so that data relevant to credit management can be maintained and monitored.
What sections does the credit management master record consist of?
1. General data
2. Credit control datat
3. Overview - contains the most important information from all sections
How is credit control carried out in the IDES?
1. After order placement a credit check is run to ensure the customer will not be over limit if the transaction proceeds.

2. If credit limit exceeded the order will be blocked

3. The credit representative is notified and clarifies the situation with the customer

4. After clarification, the credit represenative will either release the order or reject the order depending on the situation.
On the day of delivery what documents are created?
1. Outbound delivery document
2. A goods issue document (MM)
3. An accounting document (FI)
When an accounting document is created after a goods issue, what accounts are debited and credited?
The cost of goods sold is debited and the inventory is credited
In billing, the last stage of the sales process, what documents are created?
A billing document created in SD and an accounting document created in FI.
When an accounting document is created after billing, what accounts are debited and credited?
The customer is debited and revenue is credited.
What is the sales order process effect on the balance sheet?
1. Delivery - debit stock change and credit material

2. Billing - debit receivables and credit income on the P/L (The expenitures had already been debited on the P/L reconciliation account due to initial cost incurred to make material)

3. Payment - credit to receivables and debit to the bank account (already previously credited due to expenses)
What is a tolerance group?
Where a maximum amount that constitutes a payment difference is defined.
A payment difference outside of tolerance limits must be dealt with manually in what fashion?
With a partial payment or residual item.
What is a partial payment?
The item being short-paid will not clear.
What is a residual item?
The open invoice is cleared and an open item in the amount of the payment difference (residual) is created
What organizational units do assets belong to?
A company code and a business area
Where are all the postings made to an asset applied?
In the assigned company code and business area
What CO objects can you assign an asset to?
A cost center, internal order, or an activity type.
What is an asset class?
The main criteria for defining an asset. Each asset ahs to be assigned to an asset class.
What can you define in an asset class?
Certain control parameters and default values for depreciation and other master data.
What are the special asset classes used by the IDES for?
Assets under construction (4000) and low-value assets (5000).
What is the application component PM used for?
The technical management of assets
What is the application component TR used for?
Managing financial assets
How can you post in asset accounting?
1. Without a vendor or purchase order - Offset with G/L clearing account

2. To a vendor but without reference to a PO

3. Via material management using the MM functions (PO, GR, and invoice receipt)
What are the asset posting keys?
70 for debit and 75 for credit
What is a transaction type?
It is the distinguishing characteristic of the various asset postings. Specifies exactly where the asset posting is listed in the asset history sheet and is an addition to the asset posting keys
What are the different transaction types?
1. Buying and selling
2. Credit memos
3. Acquisitions from internal production
4. Adjustment postings
5. Retirements without revenue
6. Depreciation and appreciation
What does the asset explorer offer?
A clear view of the activity for an asset wiht transactions that have been posted to the asset plus planned and posted depreciation per depreciation area, per period for each fiscal year
Why are depreciation areas kept in the SAP system?
To keep more than one valuation basis.
What is kept in a depreciation area?
Separate transaction figures per asset and depreciation area and for individual value compoonents such as balances depreciation and remaining book value.
How can you use a different depreciation method for general business from the depreciation method required by the tax authorities?
By utilizing various data stored in the asset master record for depreciation areas, which control the calculation of normal and special depreciation for the special depreciation areas.
When is depreciation actually posted in asset accounting and in the general ledger?
Only after the depreciation posting run has been completed.
Where is the depreciation of assets posted to?
The corresponding depreciation accounts in teh general ledger and to the assigned CO cost oobject assigned to the asset master record.
What are the advantages of drill-down reporting compared to classic RFBILA00 reporting?
A drill-down report is much more flexible than the "old" ABAP program and selection by standard characteristics is possible directly in the entry screen.